Sanctions

Baroness Laing of Elderslie Excerpts

Wednesday 19th July 2023 Commons Chamber

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I thank the Minister for setting out the measures we are debating. As the House rises for recess later this week, I am pleased we are able to meet before that, not only to debate new and welcome sanctions measures, but to reiterate our unwavering commitment to and solidarity with Ukraine, its people and its sovereignty. The NATO Vilnius summit last week underscored the strength of feeling across our diplomatic and military alliances that we must stand with Ukraine in all measures—economic, military, humanitarian and diplomatic—until this war is won and provide the guarantees that it needs.

I am also pleased that the House had the opportunity last week to explore and debate the Foreign Affairs Committee’s report on illicit finance, the Government’s response, the need to crack down on dirty Russian money within our economy and the serious problems we have had with London as a location for that and the whole ecosystem that has facilitated it over many years. On these measures, I want to make it clear, as I have on many occasions, that we will support the Government where we think they have got things right on sanctions and we will not seek to divide this House on this measure.

However, I do have some questions for the Minister. More than 500 days into this conflict, it should not be potentially lawful for a UK legal services provider to support commercial activities that advance Russian state interests and the interests of those who support the egregious and barbaric war in Ukraine, just because said activity does not have a sufficiently tangible connection to the UK, due to the territorial application of the Russia (Sanctions) (EU Exit) Regulations 2019. It must be the case that no UK person, or person in the UK, can provide legal advisory services to an activity that would be prohibited under our regime.

I hope the Minister can say why it has taken so long to bring forward this measure. I accept that the sanctions regime is a constantly evolving feast, and we have had this debate many times, but that is obviously a significant potential risk, so I hope she can explain what has happened with the timing.

I welcome the Minister’s clarification regarding a general licence and the discussions that will be had. I know that other right hon. and hon. Members have expressed, and will express, concerns about the ability to access legal advice for positive purposes, if I may put it that way. On the other hand, I have some questions regarding licences and exemptions that have been granted in the past, including for access to legal services, and the ministerial oversight of those.

One particular case was in January this year, when it came to light that the Treasury had issued special licences that allowed Prigozhin, the leader of the brutal Wagner Group, exemptions and licences to acquire legal support—in fact, I believe it was flown to him in Russia at the time—to sue his critics here in the UK. That is obviously completely unacceptable. I hope that the Minister can explain, given the questions that I and others have asked about that, what role Ministers are now taking in the issuing of exemptions and licences.

The Minister will be involved in developing the general licence that she talked about for legitimate purposes, but at the other end of the spectrum there are an awfully large number of licences that have been granted. Perhaps she could write to me and to the House with a full list of licences and exemptions that have been granted and for what purposes, and clarify whether Ministers, particularly in her Department, now have oversight of those, or whether that is just being done by officials. These are significant matters and we do not want to see anything sneak through that is going to facilitate or aid Russian activities.

I would also like the Minister to explain how the Office of Financial Sanctions Implementation is monitoring the utility of the various exemptions issued under the sanctions regime, and whether they are enhancing the regime or potentially, in some instances—I hope this is not the case—undermining it. The OFSI should be undertaking constant reflection on and refinement of the regime and ensuring that, while we have the strongest text for the sanctions, their actual application is being done in the most effective way to tackle the aggressor in this case.

While I am on the subject of exemptions and loopholes, in the last Committee debate that we had on such measures the Minister committed to write to me regarding some serious concerns I raised about third countries being used to avoid our sanctions regimes in a number of product areas. That would be interesting in terms of the services sector and the legal services we are referring to in this debate, but it also applies to a number of goods. I hope she can write to me before the recess with answers to those questions, because they are significant.

As the House is about to rise for recess, I reiterate the position of the official Opposition, the Labour party, to work with the Government in support of Ukraine, its security, its prosperity and its future, and to co-operate on measures against Russia and those who would aid and abet Putin’s regime. We must continue to do that and to see that Russia and all those who support Putin lose. Our sanctions regimes and the way they are applied are crucial to that. We must never again allow London to be part of an ecosystem of lawyers, accountants, company formation agents and others who have facilitated the very people behind the Russian regime and are ultimately aiding and abetting Putin.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the Chair of the Justice Committee.

--- Later in debate ---

[Sir Chris Bryant]

I would just like to put on the record how much we respect and admire the team of roughly 150 people who work in the sanctions group. It is not easy work—it is tough to get it right—and they are magnificent. Is that in order?

[Madam Deputy Speaker (Dame Eleanor Laing)]

That is in order.

[Anne-Marie Trevelyan]

I thank the hon. Gentleman for his kind and thoughtful intervention. They are an extraordinary team—they are working flat out all the time. Sadly, until such time as Putin loses this war, we will continue to work flat out to ensure that we have as many sanctions tools available to us as possible. In the meantime, I hope and trust that the House will support the regulations.

Question put and agreed to.

Resolved,

That the Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2023 (SI, 2023, No. 713), dated 27 June, a copy of which was laid before this House on 29 June, be approved.